White Knight For Flailing Knight: WSJ Reports Potential Bailout Merger In The Works

Tyler Durden's picture

Earlier we said that Knight better sell itself today or it's lights out. Sure enough, here come the rumors via the WSJ:

Knight Capital is in talks with Virtu Financial, a big player in high-speed trading and "designated market maker" on the NYSE, about a potential merger or infusion of capital

And more from Dow Jones:

  • WSJ: Knight in Discussions About Possible Deal With Electronic-Trading Firm Virtu — Sources
  • WSJ: Talks Also Involve Silver Lake Partners, An Investor in Virtu — Sources
  • WSJ: Talks in Early Stages and No Deal Guaranteed — Sources
  • WSJ: Knight Also in Talks With Other Potential Funders, Partners — Sources

Will it happen? Maybe. Although we doubt it - why pay for equity value when one can pick up the functioning assets in a Chapter 363 asset sale which also sticks the creditors with all the crappy assets? Just like Barclays did with Lehman for millipennies on the dollar.